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In reviewing a series of audits while in the process of preparing our company's annual report, it has come to my attention that different accounting methods are being used during different accounting periods.

During the period from _________________ to _________________, the LIFO method was applied to our inventory calculations. However, during the next period, the FIFO method was applied. Clearly, we will generate more accurate numbers if we use the same method of analysis for all audits. The method of choice for our company is LIFO.

Please review all audits for the past fiscal year and make sure that all methods of analysis are internally consistent. Send me a summary report of all changes you have made by next Friday, _________________, at 5:00 PM.

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